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9.c Request from US Solar to reconsider community solar ordinance Staff Report Date of Meeting: To: City Council From: Neil Soltis, Administrator Re: Background: In September, 2017 the Council approved an ordinance that repealed the section of the development code that regulated solar farms and community solar gardens. Below are the findings from the ordinance: Section 1. Findings. The City Council hereby makes the following findings for the repeal of Section 4.34 of the Development code regulating Solar Farms and Community Solar Gardens. The City has determined that current regulations and official controls may not adequately address: 1. Whether the continued expansion of the use will negatively impact the use and enjoyment of other property in the immediate vicinity of the solar projects, 2. Whether the use may have negative impacts on the value of nearby properties which impacts will not be known until there are sufficient real estate transactions completed after the current Solar Farms and Community Solar Gardens are constructed to determine the impacts, 3. Whether the use will negatively impact the normal and orderly development and improvement of surrounding property for uses permitted in the applicable zoning districts, and 4. Whether the impacts of the development of additional community solar farms and community solar gardens will conflict with the vision expressed in the 2030 Comprehensive Plan that Scandia maintain its unique rural character, agricultural heritage, historic charms and natural resources, based on the City’s experience with the difficulties of screening this use from public roadways and surrounding properties. At the October Council Work Session Jane Qualey and Reed Richardson of U.S. Solar requested the Council to consider approving a community solar ordinance that would address the concerns voice d by the Council when the previous Community solar ordinance was previously repealed. At the work session Council members noted that mono-pole interconnections, geographic limitations, buffers between gardens, type of connections such as utility boxes, real estate tax implications, decommissioning costs, and potential of hazardous materials are areas that need information. Qualey and Richardson agreed to return to the next Work Session for further discussion. They offered to provide a map of potential locations in the vicinity of Xcel’s 3-phase power line to show a theoretical maximum, and examples of solar ordinances implemented in other communities that address similar concerns. The information that follows this report has been provided by US Solar and includes the following:  A rundown of the potential solar overlay district and supporting information.  A redline of the ordinance incorporating the requests from the work group.  A guide breaking down the changes we made to the ordinance. Issue: Does the Council want to refer a revised ordinance to the Planning Commission for public hearing and recommendation? Proposal Details: See the information the follow provided by US Solar. Fiscal Impact: For tax purposes land that is used for solar is taxed at a higher classification. Additionally, the City will receive 20% of the production tax that is paid to the County. Options: 1. Deny the U.S. Solar request 2. Request additional information 3. Refer the matter to the Planning Commission for a public hearing and recommendation. -FeederA -Feeders -FeederA Feeder with capacity 100 N 6th Street, Suite 218C Minneapolis, MN 55403 612.294.6978 www.us-solar.com 1 Guide to the City of Scandia’s Ordinance Changes 4.33.1.A • We added language requiring all solar gardens to be within the Solar Overlay District. 4.33.1.B • We have included a map of the Solar Overlay District for the City of Scandia that can be used as an exhibit, attached. 4.33.1.D • We added language specifying that all solar gardens shall not exceed 1 Megawatt AC in size. 4.33.3.D • We added the previously discussed language on interconnection poles, below. Utility poles associated with each solar energy farm shall be limited to up to one pole for each permitted megawatt AC of electricity. Utility poles legally permitted in any road right- of-way or which are currently existing are not included in this calculation. The proposed placement of all utility poles and any proposed aerially mounted equipment shall be shown in any proposed plans submitted. The Planning Commission shall specifically approve the placement of all utility pole outside of the road right-of-way. 4.33.4.A • We omitted the language that references gardens up to 50 Megawatts in size. 4.33.4.D • We added the requested 200 ft setback from residential structures. 4.33.4.F • We minimized the height of the system from 15’ to 12’. Ordinance No. 174 Page 1 of 5 CITY OF SCANDIA ORDINANCE NO. 174 AN ORDINANCE AMENDING ORDINANCE NO. 122, THE SCANDIA DEVELOPMENT CODE, CHAPTER 2, SECTION 4.34, REGARDING SOLAR FARMS AND COMMUNITY SOLAR GARDENS The City Council of the City of Scandia, Washington County, Minnesota hereby ordains: Section 1. Amendment. Ordinance No. 122, the City of Scandia Development Code (“Development Code” or “Code”), Chapter Two, Section 4.34, Solar Farms and Community Solar Gardens, shall be amended as follows: 4.33 Solar Farms and Community Solar Gardens. Solar farms and community solar gardens shall comply with all of the following standards: (1) Districts and Size Limits (A) Solar farms and community solar gardens are allowed within the Solar Overlay District and require a Conditional Use Permit. (B) The Solar Overlay District is established as that area shown on Exhibit A. (C) The City prohibits solar farms and community solar gardens outside of the Solar Overly District as well as within the following districts: 1. Within areas designated as Shoreland Districts by the Department of Natural Resources and the City of Scandia Shoreland Ordinance. 2. Within wetlands to the extent required by the Minnesota Wetlands Conservation Act. 3. Within the Floodplain District. (D) Solar farms and community solar gardens shall not exceed One (1) Megawatt AC in size. (2) Accessory solar farm and community solar garden uses are exempt from the Residential and Agricultural Accessory Structure standards regarding the square footage and number of structures permitted on a parcel, but must conform to the setback and lot coverage standards in this Development Code. (3) Permit Application (A) Existing Site Plans Required. The applicant for a solar farm or community solar garden shall submit a detailed site plan of existing conditions, showing Style Definition: Heading 1 Deleted: Deleted: Permits Deleted: Agriculture Core (AG C), Agriculture Preserves (AP), and General Rural (GR) zoning districts Deleted: In the AP Formatted: (none) Deleted: , the use Formatted: (none) Deleted: permitted Formatted: (none) Deleted: parcels where the Agriculture Preserves Program status and agreements permit this use Formatted: (none) Formatted: Font: 12 pt, English (United States) Ordinance No. 174 Page 2 of 5 site boundaries; existing access roads, driveways, and easements; existing structures; setbacks; surface water drainage patterns, floodplains, Shoreland districts, delineated wetlands, toe and top of bluffs, ordinary high water mark and other protected natural resources; existing vegetation, soil types, topography (2-foot contour intervals), and all other items required in Chapter 1, Section 5 of this Code for Conditional/Interim Use Permit applications or by the City. The Existing Site Plan shall include a graphic scale not less than 1:100 and a north arrow. (B) Proposed Site Plan Required. The applicant shall also submit a site plan of proposed conditions, including the proposed number, location and spacing of solar panels; proposed height of panels; location of access roads; planned location of underground or overhead electric lines connecting the solar farm to the building, substation or other electric load; new electrical equipment other than at the existing building or substation that is the connection point for the solar farm; proposed stormwater management facilities; proposed erosion and sediment control measures, and other information as required by the City. The Proposed Site Plan shall include a graphic scale not less than 1:100 and a north arrow. The application shall also include a vertical sketch elevation of the premises accurately drawn to a scale identified on the drawing, depicting the proposed solar energy conversion system and its relationship to the surrounding topography and public roadways. The sketch shall depict the proposed system’s relationship to structures on adjacent lots within 150 feet of the parcel boundary (if any). The sketch elevation shall include a graphic scale not less than 1:50, or as needed to clearly show the vertical relationship between the proposed solar facilities and structures on adjacent lots. (C) Use of Public Roads. The applicant shall obtain all necessary approvals from the appropriate road authority for site access and driveways. (D) Interconnection Agreement. The applicant shall complete an interconnection agreement with a local utility and provide a copy of the agreement to the City before approval of electrical, building, or other required permits. The system operator shall provide a visible external disconnect if required by the utility. Utility poles associated with each solar energy farm shall be limited to up to one pole for each permitted megawatt AC of electricity. Utility poles legally permitted in any road right-of-way or which are currently existing are not included in this calculation. The proposed placement of all utility poles and any proposed aerially mounted equipment shall be shown in any proposed plans submitted. The Planning Commission shall specifically approve the placement of all utility pole outside of the road right-of-way. (E) Liability Insurance. The applicant shall maintain a current general liability policy covering bodily injury and property damage with limits of at least $1 Ordinance No. 174 Page 3 of 5 million per occurrence and $1 million in the aggregate and provide proof that it meets the insurance requirement to the city. (F) Decommissioning Plan. The applicant shall submit a decommissioning plan to ensure that facilities are properly removed after their useful life. If the solar energy system remains nonfunctional or inoperative for a continuous period of one year, the system shall be deemed to be abandoned and shall constitute a public nuisance. The plan shall include provisions for removal of all structures and foundations, restoration of soil and vegetation, and a plan ensuring financial resources will be available to fully decommission the site. The City may require the posting of a bond, letter of credit or the establishment of an escrow account to ensure decommissioning. (G) Payment In Lieu of Taxes. Notwithstanding that Minnesota Statutes Section 272.02, Subdivision 24 (or its successor) classifies real property upon which a solar energy generating system is located that is used primarily for solar energy production (subject to the production tax under Minnesota Statutes Section 272.0295) as class 3a, the City may require the applicant to enter into a Payment In Lieu of Taxes Agreement to compensate the City for any prospective tax revenue that may be lost due to such reclassification. (4) Performance Standards (A) The limitations on the number or cumulative generating capacity of community solar garden facilities is regulated by Minnesota Statutes 216B.164 and related regulations. (B) Solar farms and community solar gardens shall be in compliance with all applicable local, state and federal regulatory standards, including the State of Minnesota Uniform Building Code, as amended; the National Electric Code, as amended; the State Plumbing Code, as amended; the Minnesota Energy Code, as amended. (C) If the proposed solar farm or community solar garden is adjacent to areas designed or formally protected from development by Federal, State, or County agencies as a wildlife management area, scenic byway, or National Wild and Scenic corridor, the applicant shall implement mitigation measures that would protect the resource values of the designated wildlife area or scenic corridor as a condition of approval. Such measures may include, but are not limited to, maintaining wildlife travel corridors, setting the development back from the right-of-way or stream corridor, using the natural topography to screen the project, and retaining or planting vegetation that would obscure the view of the energy project within the scenic corridor. Deleted: , Formatted: Hyperlink, Font: 10 pt, English (United States) Deleted: Solar farms which have a generating capacity of 50 megawatts of power or more shall fall under the jurisdiction of the Minnesota Public Utilities Commission. Deleted: Deleted: obsure Ordinance No. 174 Page 4 of 5 (D) All solar farms and community solar gardens shall be setback a minimum 75’ from all parcel boundaries and 200’ from adjacent primary residential structures. The City may require wider setbacks if it determines that the wider setbacks are warranted by the potential impacts to adjacent properties. (E) Solar farms and community solar gardens shall be setback a minimum of 200 feet from the centerline or 150 feet from the right-of-way of minor arterial roadways, whichever is greater. (F) Ground-mounted solar energy systems shall not exceed twelve feet (12’) in height. Building-integrated solar energy systems shall not exceed the maximum height permitted in the zoning district. (G) Solar farms and community solar gardens shall be screened from view from the public right of way to the extent possible by setbacks, berming, existing vegetation, landscaping, or a combination thereof. The City may require that the solar arrays be screened from view from nearby or affected properties using the same screening elements, and may require a vegetative buffer up to 25’ in depth and/or screening of up to ninety-five (95) percent of the view of the solar arrays from adjacent parcels. The required screening shall be achieved with 2 growing seasons from the date of project approval. (H) Solar farms and community solar gardens are subject to stormwater management and erosion and sediment control best practices and NPDES permit requirements, and shall obtain required permits from the MPCA, local Watershed District, City and others. (I) The manufacturer’s engineer or another qualified engineer shall certify that the foundation and design of the solar panels is within accepted professional standards, given local soil and climate conditions. (J) Power and communication lines that are not defined in this ordinance as Essential Services and running between banks of solar panels and to electric substations or interconnections with buildings that are on adjacent parcels shall be buried underground. Exemptions may be granted by the City in instances where shallow bedrock, water courses or other elements of the natural landscape interfere with the ability to bury lines, or the distance to a substation or other point of interconnection reasonable precludes burial. (K) All solar farm and community solar garden facilities shall be designed and located in order to prevent reflective glare toward any inhabited buildings on adjacent properties, as well as adjacent street rights-of-way. Steps to control glare nuisance may include selective placement of the system, screening on the side of the solar array facing the reflectors, reducing use of the reflector system, or other remedies that limit glare. Solar farms utilizing a reflector system shall conduct a glare study to identify the impacts of the system on Deleted: fifteen Deleted: 15’ Ordinance No. 174 Page 5 of 5 occupied buildings and transportation rights-of-way within a half mile of the project boundary. The glare study shall also address aviation impacts. (L) The surface area of ground-mounted systems in combination with driveways, structures and other impervious surfaces on the parcel shall not exceed the maximum lot coverage standard of the applicable zoning district. (M) A clearly-visible warning sign concerning voltage must be placed at the base of all pad-mounted transformers and substations. All mechanical equipment, including any structure for batteries or storage cells, shall be completely enclosed by a minimum eight (8) foot high fence with a self- locking gate, and provided with screening in accordance with the landscaping provisions of the Development Code. (N) Any fences or barriers installed for the project shall incorporate wildlife- friendly design. The City will utilize recommendations from the Minnesota DNR to determine if the fence design is wildlife-friendly. (O) If the solar energy system remains nonfunctional or inoperative for a continuous period of one year, the system shall be deemed to be abandoned and shall constitute a public nuisance. The owner shall remove the abandoned system at their expense after obtaining a demolition permit. Removal includes the entire structure including transmission equipment. Section 3. Effective Date. This ordinance shall be in full force and effect upon its adoption and publication according to law. Passed and adopted by the City Council of the City of Scandia this 16th day of August, 2016. Randall Simonson, Mayor ATTEST: Neil Soltis, Administrator/Clerk